The U.S. Treasury Department has announced a major shift in enforcement of the Corporate Transparency Act (CTA), suspending penalties against U.S. citizens and domestic companies for non-compliance with beneficial ownership reporting requirements.
In a statement released on March 2, 2025, Treasury Secretary Scott Bessent said the department will not enforce any fines or penalties associated with the beneficial ownership information (BOI) reporting rule under existing regulatory deadlines. Furthermore, the Treasury will not enforce penalties against U.S. citizens or domestic reporting companies even after forthcoming rule changes take effect.
Key Points:
- Treasury will issue a proposed rulemaking to narrow the CTA’s scope to foreign reporting companies only
- Move aims to support American taxpayers and small businesses by reducing regulatory burden
- Described as part of President Trump’s agenda to ‘unleash American prosperity’ by reining in regulations
Industry Reaction
The announcement has been met with mixed reactions from compliance professionals and legal experts:
- Supporters praise the move as reducing unnecessary burdens on U.S. businesses
- Critics argue it weakens efforts to combat money laundering and financial crimes
- Questions remain about how narrowing the scope will impact the CTA’s effectiveness
What’s Next
Companies should monitor developments closely as the Treasury moves forward with proposed rule changes. While enforcement is suspended, the underlying statutory requirements of the CTA remain in effect. Legal experts advise businesses to continue good faith efforts toward compliance until formal rule changes are finalized.
The Treasury’s action signals a significant shift in U.S. anti-money laundering policy under the Trump administration. How this will impact broader financial crime prevention efforts remains to be seen. Compliance professionals should stay tuned for further guidance as this situation develops.
References:
- https://www.americanactionforum.org/week-in-regulation/immigration-rule-brings-first-real-costs-of-new-administration/
- https://www.ul.com/resources/global-market-access-regulatory-news-update
- https://www.complianceweek.com
- https://natlawreview.com/article/new-us-regulations-vehicle-connectivity-and-automated-driving-systems-compliance
- https://www.globalcompliancenews.com
- https://natlawreview.com/article/tariffs-and-other-regulatory-charges-imported-goods
- https://www.compliance.ai/agency-report/mar-03-2025/
- https://developer.apple.com/news/
- https://www.ajmc.com/view/cancer-labels-on-alcohol-ireland-where-pubs-still-rule-will-have-them-by-next-year
- https://www.ama-assn.org/practice-management/digital/myth-or-fact-universal-break-glass-ehr-functionality-must
- https://home.treasury.gov/news/press-releases/sb0038
- https://www.internationaltaxreview.com/article/2ej37zf99ocam2om5dpmo/direct-tax/state-of-the-market-analysing-the-uss-top-advisory-players
- https://natlawreview.com/article/uscis-issues-regulation-requiring-alien-registration
- https://nscsw.org/practice/professional-development-standards/
- https://www.raps.org/news-and-articles/news-articles/2025/3/eu-device-expert-warns-manufacturers-not-to-wait-u
- https://www.jdsupra.com/legalnews/reminder-federal-communications-4568981/
- https://www.stout.com/en/insights/commentary/regulatory-compliance-financial-crimes-update-march-2025
